The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (22-November-2006)
    PACRA Assigns Entity Ratings to
Network Microfinance Bank Limited
 

 
Analyst
Sumaira Fazal
(+92-42-586 9504)
sumaira@pacra.com

 

 

 



 

 

 

 

 

 

 

 



Disclaimer
This press release is transmitted to you for this sole purpose of dissemination through your newspaper/magazine/agency. The press release may be used by you in full or in part without changing the meaning or context thereof but with due credit to PACRA. However, PACRA has the sole right of distribution of its press releases for consideration or otherwise through any media.

  

The Pakistan Credit Rating Agency (PACRA) has assigned a long-term entity rating of “BBB” (Triple B) and short-term rating of “A3” (A three) to Network Microfinance Bank Limited (NMBL). The ratings denote low expectation of credit risk and an adequate capacity for timely payment of financial commitments.

NMBL’s ratings reflect its reasonably designed governance standards and a prudent growth stance that is expected to help in retaining an adequate capital structure. Meanwhile, the profitability is likely to remain constrained compared to other financial institutions, given the nature of the bank’s business rendering a high cost structure. However, this is in line with the sponsor’s socially motivated strategy to use banking as a vehicle to help in poverty alleviation.

About the bank: NMBL, established under the Microfinance Institution Ordinance 2001, is listed on Karachi Stock Exchange. The bank started its operations in January 2005, with the principle objective to provide microfinace services to poor and underprivileged communities. The main sponsors of the bank are Jahangir Siddiqui & Company Limited and Network Leasing Corporation Limited, collectively holding 50% of the bank’s equity. Currently, NMBL can only operate district-wide owing to minimum level of capital base as prescribed under the law. The bank carries out its operations through its head office in Karachi as well as through mobile bank branches.

The Chief Executive Officer of the bank, Mrs. Musaret Siddiqi, is a qualified Chartered Accountant. She has accumulated rich experience of domestic microfinance sector during her stay of around 10 years with Network Leasing Corporation Limited.
 
The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity.

PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings.

PACRA's opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.

 

    
king of the hill